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Analysis: Upstream Companies Evolving To Sustainable Cash-Flow Model

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By Steve Toon, Hart Energy
July 15, 2014

After 50 years of chasing returns tied to the whims of commodity prices, upstream exploration and production (E&P) investors can now look forward to upside from an unlikely indicator: sustainable positive cash flows.

“Historically, the only thing that mattered to the direction of E&P cash flow growth—and investment performance—was changes in the price of commodities,” said Raymond James analyst Marshall Adkins in a July 13 research note, along with Praveen Narra. However, the Raymond James researchers think they have uncovered a paradigm shift that will redefine growth and profitability for ...

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